11.22.06 | Benefits of Federal Loan Consolidation
Federal Loan consolidation is a practical way for borrowers to manage their student loan debt. Borrowers may consolidate for one or any combination of reasons. The most common reasons are:
- With only one lender involved you will always know who to contact.
- You will receive one monthly bill each month.
- An extended repayment period-from 10-30 years depending on the total loan balance.
- Renewed Deferments and Forbearance.
- Any subsidized Stafford loans that get consolidated will keep their interest subsidy benefits during deferment.
- If you consolidate during your grace period the interest rate will be lower. That is because the interest that applies to consolidation will be the “grace rate”, which is lower than the rates you pay after entering repayment.
- Depending on the interest rates of your existing loans and how long you take to repay, you could save money if interest rates increase in future.
For further information on loan consolidation or to request an application please visit www.studentloanconsolidator.com
The Student Loan Network: Stafford Federal Student Loans, Parent PLUS Loans, Student Loan Consolidation, Private Student Loans, Education Loans/College Loans
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Filed under: Consolidation, Why Consolidate
